Question : Share of MSMEs

(a) the share of Micro, Small and Medium Enterprises (MSMEs) in the total industrial production, export, employment generation and creation of assets in the country during each of the last three years and the current year, State/UT-wise;

(b) the contribution of MSME sector towards GDP growth during each of the last three years and current year;

(c) whether the share of MSME sector in the total industrial production in the country has seen declining trend in the recent years and if so, the details thereof and the reasons therefor;

(d) whether the Government has set any target for the growth of MSME sector in view of the Atmanirbhar Bharat programme and if so, the details thereof alongwith steps taken to achieve the higher growth rate; and

(e) the other steps taken by the Government to formulate an integrated policy for promotion of MSMEs in the country?

Answer given by the minister

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a): As per the information received from Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of MSME related products to All India Export (in US$) during the years 2017-18, 2018-19, 2019-20 and 2020-21 (up to Nov.2020) are 48.56%, 48.10%, 49.77% and 49.13% respectively.

Under the Prime Minister’s Employment Generation Programme (PMEGP), the estimated employment generated (number of persons) in micro enterprises during the years 2017-18, 2018-19, 2019-20 and 2020-21(as on 31.12.2020) are 3.87 lakh, 5.87 lakh, 5.33 lakh and 2.55 lakh respectively. The State/UT wise details are attached as annexure-I.

(b): As per the information received from Central Statistics Office , Ministry of Statistics & PI, Share of MSME Gross Value Added (GVA) in All India Gross Domestic Production (GDP) at constant prices (2011-12) for the years 2017-18, 2018-19 and 2019-20 are 31.17%, 31.65% and 31.66% respectively.

(c) to (e): Production-Linked Incentive (PLI) Scheme in 13 key sectors, under the aegis of AatmaNirbhar Bharat, have been announced for enhancing India’s manufacturing capabilities and exports. PLI Schemes for medical devices; mobile phones; electronic components; pharmaceutical drugs; telecom and network equipment; and electronic technology products have been notified.

As part of Atmanirbhar Bharat Abhiyaan, the ECLGS was launched on 23rd May 2020. The scheme envisages fully guaranteed collateral free additional credit to eligible MSME units and business enterprises either in the form of additional working capital term loans (in case of banks and FIs), or additional term loans (in case of NBFCs) up to 20% of their entire outstanding credit as on 29.2.2020. All entities with outstanding credit of up to Rs. 50 crore as on 29.2.2020 and annual turnover of up to Rs. 250 crore, which were less than or equal to 60 days past due as on 29.2.2020 are eligible under the Scheme. The Scheme seeks to help the eligible entities tide over the crisis caused by the Covid-19 pandemic and meet their operational liabilities.

The Ministry of Micro, Small and Medium Enterprises (MSMEs) implement various other schemes for the growth and development of MSME sector in the country. These include Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

Recently, Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 Pandemic. Some of them are:
i) Rs 20,000 crore Subordinate Debt for MSMEs.
ii) Rs 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.
iv) New revised criteria for classification of MSMEs.
v) New Registration of MSMEs through ‘Udyam Registration’ for Ease of Dong Business.
vi) No global tenders for procurement up to Rs. 200 crores, this will help MSME.

An online Portal “Champions” has been launched on 01.06.2020 by Hon’ble Prime Minister. This covers many aspects of e-governance including grievance redressal and handholding of MSMEs. Through the portal, total 28,862 grievances have been redressed up to 12.03.2021.

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